The founder of the cryptocurrency Cardano called state cryptocurrencies the main threat — here are the reasons

Charles Hoskinson, the founder of Cardano, said that he would never support state-owned digital currencies because they violate the privacy of users.

According to Charles Hoskinson, CBDC is the most dangerous economic innovation. «CBDC is not a cryptocurrency. Central bank digital currencies may have the same functionality as BTC or ADA, but I will never support them in my life. This is a financial system where we transfer full control, unlimited monopoly, and economic access to our financial autonomy,» the father of Cardano shared his point of view.

Hoskinson is convinced that constant monitoring of state digital currency transactions can destroy privacy and make CBDC a tool for censoring and controlling users who have used state digital currency at least once. «Suppose there is a civil war in the country between two ethnic groups. And the majority party, which supports the government and controls the CBDC, can block all the money of its opponents,» Hoskinson gave an example.

The Cardano founder is not the only one who is concerned about the lack of privacy when using CBDCs. Due to the possible expansion of state control over the last areas of personal economic life that are free from surveillance, analysts at the American research center Bitcoin Policy called on the US authorities to abandon the development of a state cryptocurrency. «CBDCs will essentially give governments access to every transaction made by any person anywhere in the world. It’s only a matter of time before transaction data is available to everyone in the world, as government IT infrastructure is a target of increasingly frequent hacker attacks,» shared their point of view Natalie Smolenski, Executive Director of the Texas Bitcoin Foundation, and Dan Held, former Head of Development at Kraken.